Winnersrationale

The universe of negative-yield products has expanded globally in a low interest rate environment that looks set to last. As investors in search of income have zeroed in on credit opportunities in Asia, Value Partners has been quick to capitalise on the rising demand with a solution that delivers both income and capital growth for yield-hungry investors.

Incepted in November 2017, the Value Partners Asian Income Fund deploys a dynamic allocation to equities and bonds of Asian companies. It targets a low volatility portfolio through active screening and selection of lower volatility stocks with growth potential and fixed income instruments — investment-grade, high-yield, and convertible bonds. The asset allocation process is predicated upon long-term macro insights and fundamental research of companies. Hedging strategies are equally used to manage risks as and when needed.

Thanks to its diversified position across the Asia region, the fund has maintained a relatively modest exposure to the China market compared to peers, and this has helped its performance during the summer market which followed Beijing’s crackdown on the country’s technology and education sectors. The fund has been wary of the China real estate and went underweight in the sector in 2020. This added to its resilient performance throughout 2021.

The fund recorded a 22.1% YoY return as of 31 August 2021. On a YTD basis, it returned 8.8%. Such performance has placed the fund in the first quartile among its peer funds during the period, earning it a Morningstar rating of 4 stars, as of August 2021. It seeks to achieve a monthly dividend of about 4.0% in addition to the capital gains from its investments.

With its ability to deliver income in a challenging environment while capturing growth opportunities through careful screening, the Value Partners Asian Income Fund has garnered interest from private banks in the region. During the period under consideration, the Value Partners platform has onboarded new distribution partners.

Value Partners has been selected as Asian Private Banker’s Best Fund Provider – Multi Asset Solution for 2022.

Winners rationale

The search for income seemingly never comes to an end among Asia’s HNWIs, although the lower for longer yield environment has been a top theme over the past few years. Diversifying away from investing in pure fixed income into positioning around multiple income streams has played into the hands of Goldman Sachs Asset Management.The asset manager leads the multi-asset segment partly on account of the success of its flagship product, the Goldman Sachs Global Multi-Asset Income Portfolio. The strategy experienced decent inflows in 2020, representing more than 100% YoY growth in AUM.

By balancing its sources of income and by maintaining a robust diversification, the strategy enables investors to deliver strong total returns. The fund addresses a crucial challenge faced by investors searching for sustainable income alongside capital appreciation in a world of very low bond yields, high equity valuations and elevated uncertainty in the wake of the pandemic.

The investment team — with its proprietary asset allocation framework — goes beyond simply allocating capital across asset classes. Instead, it allocates risk across sources of return in markets. The numbers speak for themselves.

What sets the firm apart from peers is the breadth and depth of its client service. Employing a team approach to investment and client service, the firm brings together the relationship management and portfolio management teams to offer a cohesive client service experience.

Particularly in muted return environments such as today, the firm showcased how active management should play an important role in a diversified portfolio. Goldman Sachs Asset Management is therefore Asian Private Banker’s choice for Best Fund Provider – Multi-Asset Solution for 2021.

Winners rationale

Investors’ thirst for yield intensified in 2019 as escalating trade and geopolitical tensions continued to cloud risk sentiment. Yet, with global central banks staying accommodative to keep the world’s economy on track, income opportunities could rarely be found in a pure traditional fixed income strategy, and thus an active income-sourcing approach across different asset classes became more important.

In 2019, J.P. Morgan Asset Management continued to lead the multi-asset category with the success of the JPMorgan Global Income Fund strategy, which has a track record of over 10 years.

In Hong Kong, the multi income strategy achieved top quartile performance for one-year, three-year and five-year periods, beating the peer group median, according to Morningstar.

Designed to be flexible with respect to geography, asset class, market capitalisation, and capital structure of the securities selected, this strategy took a medium to long term view of markets with a priority of income, acting on the investment themes that the investment team believed were going to outperform in the next six to 12 months.

Although the core sources of income for this fund were the asset classes (such as high yield, emerging market debt, investment grade bonds, high-dividend yielding equities, and REITs), the strategy dynamically adjusted the portfolio and considered opportunistic allocations, such as convertible bonds, non-agency mortgages, and other non-traditional sources of income.

A superior fund performance and a robust investment process cannot be achieved without a dedicated team. With global integration being central to the firm’s research-driven investments, J.P. Morgan Asset Management had 87 dedicated multi-asset investment professionals across 22 locations, and the team also had the ability to draw on the strength of over 1,100 investment professionals across different asset classes and regions.

Dedication and commitment to helping the region’s high net worth clients build stronger portfolios continued to make the asset manager an innovative leader in delivering the best client solutions and services in the multi asset segment.

J.P. Morgan Asset Management is therefore Asian Private Banker’s choice for Best Fund Provider – Multi-Asset Solution for 2020.

Winners rationale

Looking to tackle late-cycle headwinds, Asia’s private banking industry has sought refuge in multi-asset strategies — a trend that has played into the hands of J.P. Morgan Asset Management whose prowess in the space is a well-established fact.

And the asset manager has not limited itself to diversifying in the traditional sense across asset classes by also stressing the importance of further diversifying through, for example, style tilts or combining income-focused and total returns-focused strategies.

To be sure, J.P. Morgan Asset Management leads the multi-asset space partly on account of the success of its flagship product, the JPMorgan Investment Funds – Global Income Fund (GIF), which delivers a highly diversified and sustainable income portfolio that remains mindful of market fluctuations. Over the past year, the fund has grown 17%, totalling US$29.9 billion as at end-September 2018.

Another standout product, the JPMorgan Investment Funds – Global Macro Opportunities Fund, designed to act as a portfolio diversifier, also gained traction among the region’s wealthy over the past year, growing by 22% to US$6.2 billion as at end-Q3.

The fund’s unconstrained remit enables it to tap into non-traditional asset classes, providing a complementary return stream with a historical negative correlation to traditional equities and fixed income.

A long and sound track record of multi-asset strategies with solid inflows, backed by a dedicated marketing and distribution team, motivated the region’s private banks to select J.P. Morgan Asset Management as this year’s Best Fund Provider – Multi-asset Solution.